The Effect of Supply Chain Management Practice on Organizational Performance in the case of Nefas Silk Paint Factory
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Date
2023-06
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Addis Ababa University
Abstract
Supply chain management practice effective engagement is crucial for businesses to succeed. Business to business competition is now changed to supply chain management competition. This study has tried to assess supply chain management practice and its effect on organizational performance of Nefas Silk Paint Factory. The research had three specific objective. These are: (1) Assess the effect of practicing supply chain management in organizational performance; (2) Identify the relationship between SCM practice and organizational performance in the case company context; and (3) Reflect how organizational performance be improved in Nefas Silk paint factory by practicing SCM. In this regard, supply chain management four constructs/ dimensions, namely strategic supplier partnership, customer relation ,level of information sharing, and quality of information sharing were used as independent variable. The four supply chain management dimensions correlation with the dependent variable organizational performance was analyzed. The research is descriptive in its type, and the data was collected by distributing questioner to the employees of the company by using purposive sampling technique. The data was analyzed using frequency, mean, Pearson correlation and regression and the findings were presented by table and the major findings were that the case company implements supply chain management practice highly and strategic supplier partnership and customer relationship practice of the company needs improvement; as they are implemented in medium level. What is more, the findings show positive correlation and relationship between the four supply chain management practice dimensions and organizational performance. As there are different dimension of supply chain management, and there are different contexts, and nature of business, effect of supply chain management practice can also be researched on other businesses collectively and individually.
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Supply chain Management, Supply chain Management practice